\$

# U.S. inflation rate in 1842: -5.75%

### Inflation in 1842 and Its Effect on Dollar Value

Purchasing power increased by 5.75% in 1842 compared to 1841. On average, you would have to spend 5.75% less money in 1842 than in 1841 for the same item. This is an example of deflation.

In other words, \$1 in 1841 is equivalent in purchasing power to about \$0.94 in 1842.

The 1841 inflation rate was 0.00%. The inflation rate in 1842 was -5.75%. The 1842 inflation rate is lower compared to the average inflation rate of 1.96% per year between 1842 and 2019.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1842 was 8.20. It was 8.70 in the previous year, 1841. The difference in CPI between the years is used by the Bureau of Labor Statistics to officially determine inflation. Because the 1842 CPI is less than 1841 CPI, negative inflation (also known as deflation) has occurred.

 Average inflation rate -5.75% Converted amount (\$1 base) \$0.94 Price difference (\$1 base) \$-0.06 CPI in 1841 8.700 CPI in 1842 8.200 Inflation in 1841 0.00% Inflation in 1842 -5.75%

### Inflation by Country

Inflation can also vary widely by country. For comparison, in the UK £1.00 in 1841 would be equivalent to £0.92 in 1842, an absolute change of £-0.08 and a cumulative change of -8.26%.

Compare these numbers to the US's overall absolute change of \$-0.06 and total percent change of -5.75%.

### Inflation by Spending Category

CPI is the weighted combination of many categories of spending that are tracked by the government. This chart shows the average rate of inflation for select CPI categories between 1841 and 1842.

Compare these values to the overall average of -5.75% per year:

Category Avg Inflation (%) Total Inflation (%) \$1 in 1841 → 1842
Food 0.00 0.00 1.00
Shelter 0.00 0.00 1.00
Energy 0.00 0.00 1.00
Apparel 0.00 0.00 1.00
New vehicles 0.00 0.00 1.00
Used cars and trucks 0.00 0.00 1.00
Transportation services 0.00 0.00 1.00
Medical care services 0.00 0.00 1.00
Medical care commodities 0.00 0.00 1.00

It's important to note that not all categories may be tracked since 1841. This table and visualization use the earliest available data for each category.

### How to Calculate Inflation Rate for \$1, 1841 to 1842

This inflation calculator uses the following inflation rate formula:

CPI in 1842CPI in 1841
×
1841 USD value
=
1842 USD value

Then plug in historical CPI values. The U.S. CPI was 8.7 in the year 1841 and 8.2 in 1842:

8.28.7
×
\$1
=
\$0.94

\$1 in 1841 has the same "purchasing power" or "buying power" as \$0.94 in 1842.

To get the total inflation rate for the 1 years between 1841 and 1842, we use the following formula:

CPI in 1842 - CPI in 1841CPI in 1841
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

8.2 - 8.78.7
×
100
=
-6%

Politics and news often influence economic performance. Here's what was happening at the time:

• The British gain control over Hong Kong during the First Opium War, after China conceded it to them.
• The first emigrant wagon train departs, heading from Independence, Missouri, to California.
• The first wagon train arrives in California.

### Data Source & Citation

Raw data for these calculations comes from the Bureau of Labor Statistics' (CPI), established in 1913. Inflation data from 1665 to 1912 is sourced from a historical study conducted by political science professor Robert Sahr at Oregon State University.

You may use the following MLA citation for this page: “Inflation Rate in 1842 | Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 25 Jun. 2019, https://www.officialdata.org/inflation-rate-in-1842.